Unlock Your Business's True Value: Why Your Brand is Really Important

So, why does brand really matter for B2B organisations, especially if they're thinking about selling up? And what can they actually do about it? It's a really interesting area, and it can make a significvant difference to a busienss.

First off, the old idea that B2B buying is all cold, hard logic just isn't the full picture. Turns out, just like with everyday consumer stuff, if your brand pops into your prospective customer’s head, you're way more likely to get the sale. Research has shown that whichever brand comes to mind with the out-of-market (not yet ready to buy) prospects, 80% of the time, when they come in-market to buy, that is the brand they select. They might use data to back it up later, but that initial awareness is absolutely key. For someone looking to sell their business, having a brand that potential buyers already know and think of can seriously reduce their perceived risk – and make your company much more attractive and profitable..

Something else that's super important is that building your brand isn't just a fluffy marketing exercise; it actually drives long-term profit. While getting those immediate sales is tempting, a good mix of long-term brand building and short-term sales tactics is where the real magic happens. By creating that enduring presence from brand building,  it even makes those short-term sales efforts convert even better . And for a business owner looking to sell their busiess, a history of consistent profitability, boosted by a strong brand, makes your company a much more attractive investment.

Think about pricing power too. A strong brand allows you to be less sensitive to price. Customers are willing to pay more for a brand they trust and value. The world’s most successful buyer of companies, Warren Buffett, said “The single most important decision in evaluating a business is pricing power". Potential company buyers know this, and they'll see a brand with pricing power as a really attractive asset.

And here's a cool point: a strong brand gives you options down the road. Categories can change, but a well-known and trusted brand, like Salesforce or Microsoft, can move into new areas without starting from scratch. That future-proofing is a big plus for anyone looking to acquire a company.

Finally, your brand acts like a competitive ‘moat’, another phrase I’ve stolen from Warren Buffett, to protect and defend from competitors, making it harder for others to copy your success (just think about the Coca Cola brand protecting an otherwise relatively easy to copy flavoured water drink). Unlike those short-term marketing tricks that everyone's doing, brand equity built over time is unique to you. That ‘moat’, along with things like trademarks, gives you a lasting advantage that company buyers will definitely value.

So, what can you, as an owner-manager, actually do to build that valuable brand before you decide to sell? Here are a few ideas:

• Don't neglect long-term brand building. Aim for a good balance between those long-term enduring brand-building activities and your short-term sales activation efforts – maybe even starting with a 50-50 split as a guideline. This shows you're thinking about the future.

• Make sure your brand is mentally available and distinctive in the market. You want your brand to be the first one people think of in your category. Document your unique brand elements (logo, colors, messaging) and show how you use them consistently.

• Keep an eye on your brand health. If you can, track things like brand awareness, how people see your brand, and your Net Promoter Score (NPS). Having a clear funnel that is specific to our market, to see where potential buyers are in their journey is also super helpful.

By taking these steps to build a strong and recognizable brand, you can significantly boost the value and attractiveness of your company when you decide it's time to sell. It's all about making your business the one that buyers not only understand but also really want, and will pay a premium to get.